Winter Storm Is Freezing Pipes and Hammering Natural Gas Output
US natural gas production suffered its biggest one-day drop...
US natural gas production suffered its biggest one-day drop in more than a decade on Friday as the massive winter storm battering much of North America froze liquids in pipes and forced wells to shut down.
Supplies across the Lower-48 states shrank by nearly 10 billion cubic feet, or roughly 10%, from the previous day as temperatures across key producing areas including in top supplier Texas fell below freezing, according to BloombergNEF data.
Meanwhile, domestic demand surged to the highest daily level since early 2019. Early pipeline nominations tracked by BNEF indicate that gas supplies may start to rebound Saturday while still trailing normal levels.
From Bloomberg | Oil Passes Natural Gas as Main Fuel for Power Plants in New England
Oil took over from natural gas as the leading...
Oil took over from natural gas as the leading fuel for power plants in New England, a significant switch that signals how the grid is desperately trying to keep the lights on in the face of a winter massive storm.
The six-state grid relied on oil for at least a third of its power generation and for as much as 40% at times on Saturday, ISO New England data show. Natural gas provided as little as 15% by mid-afternoon.
The region typically only uses oil to meet demand on the hottest and coldest days of the year as backup. Heading into the peak evening hours, New England issued a series of grid alerts warning of a possible shortfall of power reserves and asked market members to voluntarily conserve electricity.
The operator later said it’s trying to buy emergency supplies from market participants or neighboring regions. The situation is so tight that prices jumped to more than the $2,000 a megawatt-hour price cap on Saturday evening.This time last week, spot power was in the $30 range.
Mexico's newest oil refinery headed for half capacity in mid-2023
MEXICO CITY (Reuters) - Mexican state oil company Pemex's newest refinery will reach half of...
MEXICO CITY (Reuters) - Mexican state oil company Pemex's newest refinery will reach half of its crude processing capacity in July, the national president said on Friday, marking the latest shift in timing for the project's operations.
The Olmeca oil refinery, being built next to the Dos Bocas port, is set to be Pemex's eighth when it comes online. It is key to Mexican President Andres Manuel Lopez Obrador's plan to make the country self-sufficient in gasoline and diesel, ending longstanding heavy dependence on imports, mainly from U.S. refiners.
Describing the construction of the refinery in his home state, Tabasco, as having happened in "world record time," Lopez Obrador said "on July 1, it will begin to process 170,000 barrels per day (bpd) of crude oil."
By September 15, the day before Mexican Independence Day, it would process its full capacity of 340,000 bpd and yield 280,000 bpd of gasoline and diesel, Lopez Obrador said, posting on Twitter.
The US Energy Department declared a power emergency in Texas, citing a shortage of electricity as an...
The US Energy Department declared a power emergency in Texas, citing a shortage of electricity as an Arctic winter blast causes power plants to fail.
The order allows the state’s grid operator to exceed certain air pollution limits to boost generation amid record power demand in the state. The Electric Reliability Council of Texas, whose service area includes 90% of electric customers in Texas, requested the emergency order Friday, warning it may need to resort to blackouts.
“While the vast majority of generating units in the ERCOT region continue to operate without any problem, a small number of units have experienced operating difficulties due to cold weather or gas curtailments,” the Energy Department said in its order.
The order said 11,000 megawatts of coal and gas-fired power, 4,000 megawatts of wind and 1,700 megawatts of solar power were out or derated to weather conditions.
Benchmark U.S. crude oilfor February delivery rose $2.07 to $79.56 a barrel Friday. Brent crude for February delivery rose $2.94 to $83.92 a barrel.
Wholesale gasoline for January delivery rose 13 cents to $2.38 a gallon. January heating oilrose 14 cents to $3.27 a gallon. January natural gasrose 8 cents to $5.08 per 1,000 cubic feet.
